Thoughts On Growth


“Growth” is not necessarily, or even likely, a source of human happiness. Why is it the overarching and one univocally agreed-upon goal of our modern politics? ~Prof. Patrick Deneen

John Schwenkler was remarking not long ago on the unnatural and bizarre quality of referring to the “growth” of abstract entities, and cited objections to describing the “growth” of the economy. This language and the policies this language is used to defend have something important in common, which is the obscuring of costs and losses. As Prof. Deneen says elsewhere in the same post:

The basic circularity implicit in our current moment reveals a deeply troubling truth about our current economic condition: growth is fundamentally generated by deepening and extending bad behaviors (such as indebtedness), the costs of which are to be obscured by economic growth. However, because those costs keep rising – in every sense, not only monetary, but socially, environmentally, generationally – the need for higher economic and social costs to spur greater growth, and greater growth to service and obfuscate the costs, increases exponentially. In recent years the frenetic logic of this basic truth has led us to a condition like a runner on an out-of-control treadmill, running madly to get ahead, at best standing still, at worst about to be thrown off the machine.

The immediate goal seems to be to mask the costs of private indebtedness, which are expressed in the collapse in (artificially-inflated!) consumer demand, with massive public borrowing from the next generation. On the plus side, private indebtedness has risen to such levels that we cannot now follow the ruinous South Korean model of “recovery” through still more debt-financed private spending (not that we should want to follow that model), but the South Korean example should serve as a warning about the basic unsustainability of this obsession with “growth” that is financed with easy money and cheap credit. Eventually, there comes a time when everything that has already been bought and consumed has to be paid for, and the reckoning cannot be perpetually deferred into the future. If today’s “growth” has been purchased at the expense of future prosperity, there has not been any real growth, but merely indulgence facilitated by theft committed against those not yet born. Other costs that “growth” and faith in the power of technology to facilitate ever-more “growth” obscure are the costs to the natural world and, of course, to the social and political order.

As Prof. Deneen discusses later in the post, there is a proper fulfillment to natural growth beyond which growing is supposed to cease. Indeed, growth beyond that point is typically unhealthy and takes the form of cancers. This is the basic distinction that I believe John Lukacs also made long ago between “growth” and prosperity. On the other hand, perhaps a way of life geared towards perpetual and ceaseless growth is better understood as one that is continually regressing towards childhood and ultimately infancy, which might explain the prevalence of the optimistic, child-like belief that we can have whatever we want and there will always be someone or something to solve our problems. Maturity implies being fully grown and being ready to take on responsibilities, which suggests that the more we cultivate the idea of constant and endless “growth” as the proper goal the more irresponsible and dependent we will become.

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2 Responses to “Thoughts On Growth”

  1. …which is why, when I hear this or that study claiming that “98% of economists agree” on this or that aspect of free trade or globalism, I write it off as a misunderstanding not of economics, but of humanity. Certainly in econo-think “growth” makes perfect sense, and at almost any cost. But in terms of raw humanity, morality, etc. this is simply not the case. Economics is a strange science. It is “soft” and ought to be better at empathizing with the human condition, but it’s not, or at least economists themselves are not. Another three cheers for Prof. Deneen, says I…

  2. one reason i think people accept the idea that more growth is better is that recession is a real evil. recession leaves people unemployed and generally can inflict real pain. no one wants that, and so the result is that growth is, on the face of it, the only real alternative to a dilemma that is not really a dilemma. but the problem with this view of the economy is the quite simple fact that not everyone lives an entrepreneurial existence.

    nro has recently been trumpeting Lincoln’s conservative credentials. in an article in their magazine Lincoln’s commitment to the virtuous qualities of being an entrepreneur is praised. the problem with that though is that not everyone really cares about working hard to make more money. some do, and it’s not necessarily bad. but for people who don’t (and obviously this is more true in so-called ‘developing’ countries) a wholesale dedication to ‘growth’ is going to be an alien intrusion in their lives.

    the problem in america, though, is that our country’s wealth and economy really do seem to depend entirely on entrepreneurial activity. for people who don’t want to constantly pursue their businesses the world around them is going to suffer upheaval after upheaval without their being able to do anything about it. entrepreneurship and the free economy are ideological commitments in the sense of the word where ideology is a dedication to a distorted, even contradictory view of reality; as a result, as long as the free economy cannot relinquish its grip on the political imagination we are going to be stuck with this view.

    where does that leave us? my answer is going to be that as long as, and it’s a big if, the economy is relatively stable on the macroeconomic side of things, as it has been for a long time now, americans are not going to suffer the effects of fast-paced economic change any more than others have. so yes the world is harsh but americans have it better off than others. although the rest of the world is going to be subjected to change after change after change without the feeling that they belong, in their hearts, to these kinds of changes

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